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Re: Who's to blame for the housing mess?
Posted by: Hankg
Date: 03/21/2007 08:38AM
Government regulation of markets and goverment in general is like food. Not having enough can kill you but having to much can be just as fatal. Like food what you need is just enough of the right kind. Of course what constitutes enough and the right kind will be the subject of endless debate but you can stay out of trouble by acting with moderation, erring on the side of less rather then more, and constantly testing the results of your decisions.
In this sense both Roubini and Mish are half right. Bad policy and regulation enables and abbets abuse but so does no regulation at all. The end result is the same, disaster. In business you expect managers to manage, when they make bad decisions you don't declare we would be better with no management at all. You must both recognize the limits of what can be managed and strive to have management that is effective. For many this is a very unsatisfactory view as they would like the world to be black and white. Less is always better or the reverse, unfortunately the world is more complicated then that.
And I voted for the Fed because they hold the ultimate responsibility for inflating the credit bubble and encouraging all the abuses it spawned.
In this sense both Roubini and Mish are half right. Bad policy and regulation enables and abbets abuse but so does no regulation at all. The end result is the same, disaster. In business you expect managers to manage, when they make bad decisions you don't declare we would be better with no management at all. You must both recognize the limits of what can be managed and strive to have management that is effective. For many this is a very unsatisfactory view as they would like the world to be black and white. Less is always better or the reverse, unfortunately the world is more complicated then that.
And I voted for the Fed because they hold the ultimate responsibility for inflating the credit bubble and encouraging all the abuses it spawned.
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